Example of the scenario on willingness to pay foe improved water service?

Question

Check on Contingent Valuation Method toget the better results

Answer 1

Contingent valuation is a way of surveying people to find out what value they place on something that may not have a direct financial value to them (very common with enironmental topics).

This is in contract to revealed preference, where it is easy to look at what a consumer is willing to pay through their purchase habits.

An example using contingent valuation in your rather vague and poorly worded question would be a survey asking ratepayers what value they placed on aspects of their water service that had little financial value.  Examples would include the sustainablility of their water source, the effects of their water treatment on wildlife, other environmental impacts, etc.  They would not need to ask necessairly about water quality or quantity, as these things are much more easy to directly assign a value.

Knowing what ratepayers value, a water district would be able to confidently raise rates to pay for somthenthing they know their customers are willing to pay for, like a certain reduced environmental impact.

That's a vague answer, but give me a less vague question and I'll help you out more.

Answer 2

Could you please elaborate on the question?

It does not make sense.